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Stuck in the Middle?
Dave Coley
Why is getting stuck in the middle (=mixing the 3 types of competitive advantage) so problematic? Could an intelligent mix of these 3 be preferable? (...) Read more? Sign up for free
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Mixed strategy = unprofitable
Gary Hawkins If a firm does not dedicate itself to one of the 3 strategies by Porter, it will almost certainly suffer from poor profitability. Why? Because it will lose both the (many) customers who demand the lowest possible prices and the (fewer but very profitable) customers who are prepared to pay a premium price for the best offering in the market. Furthermore, the corporate structure, culture, reputation, marketing efforts, motivation systems, etc of firms with a mixed strategy are likely to be unfocused and ineffective.
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Multiple business units
Magnus Porter mentioned that is is possible that firms create multiple seperate business units and can then realize multiple strategies.
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Comment
Fereidoon, Student (MBA), Iran, Member (...)
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